Cryptocurrency is a digital currency which made appearance in real-world first time in 2009 when first digital currency Bitcoin was invented. This invention is associated with the name Satoshi Nakamoto who released an open-ended software, but it is not known whether some group of people was behind Bitcoin invention. The cryptocurrency later appeared with different names, called altcoins in common. A cryptocurrency is a digital coin virtually transacted without bank’s intervention through computer networks and transactions are maintained in a digital ledger called blockchain which are in any numbers for different set of transactions.
Transacting in cryptocurrency trading
This digital currency is not minted by the government but mined which is a process of cryptocurrency transaction verification. People use digital wallets to store this coin and transfer to some other wallet using processing power of the computer.A wallet is a computer software or hardware which serves the purpose of crypto coin storage and exchange.This way, a blockchain is maintained and transactions are verified. Blocks are transaction records in blockchain that are linked and encrypted. A blockchain contain three things: details of sender, receiver and number of coin units; a hash; and a hash of the preceding blockchain.
Ways for cryptocurrency trading
When to buy and sell cryptocurrency is not a complex process if it is thoroughly understood because is different from stock and forex trade. The trading in this currency is either done through cryptocurrency exchange or through a cryptocurrency broker. The exchanges are either simple or the ones that use advanced technology. The latter are better for trading because they are semi-transparent in terms of coin prices. Over the counter (OTC) cryptocurrency trading is the best option that make use of brokers. Although their transaction fee is higher compared to crypto exchanges, but the trader doesn’t need to wait for price. They transact on fixed price set by the broker and provide convenience of trade.